A New Try of Hermes-Shangxia in China
Hermes, known as a luxuriant and old brand, had a new try in China in the spring of 2010. It will create a new brand in China: ShangXia. It was first reported in the France journal and later another newspaper also verified this news from Hermes.
The chairman of Hermes told the reporters that Shangxia would express cultures of China from its styles, materials to workmanship. The officer of Hermes in China also tells the goal of Shangxia is to make a mixture of highest quality raw materials with outstanding Chinese handicraft.
Hermes was transferred to China in 1997. But its price beyond the youth's budget and it also refuses to make comprise to the youth who love luxuriant consumptions. It is impossible for Hermes to sell the products at a lower price even at the period of economic crisis. In this way, when 1 / 4 of luxuries in the world sell to the customers in China, China's sales market for Hermes only contribute to 16%, but Hermes is in the hope to seize and create more opportunities for themselves in the global luxury brand, design this new brand may be a comprise policy. If the product design and manufacturing process complete in China, a relatively favorable prices can attract those new consumers who are fond of luxuriant things.
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The chairman of Hermes hopes this new brand can make up for deficiencies of Hermes in the Chinese market. But there is a psychological gap to the consumers toward production of "luxury" made in France and those of made in China, whether a slightly lower price can remedy this is unknown. Hermes does not disclose the details of the brand, nor does any marketing promotion for it. When was asked why they had this new try, the person in charge just told us they appreciated the Chinese art. Initially the main products of this brand are tablewares and furniture with traditional Chinese themes. However, after some time the brand may be extended to other areas. They do no mention the price ranges of the products or target customer groups. They add that if it sells well in China, Hermes will promote the brand to other countries. Although Hermes is trying the new brand in China, but its main product line will not produce special products for the Chinese market.
People trust the quality and technology of Hermes, they will more trust this new brand.
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